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Domestic Offset Projects: First Experiences with JI in Germany Dr. Wolfgang Seidel

Domestic Offset Projects: First Experiences with JI in Germany Dr. Wolfgang Seidel „Designated Focal Point / Designated National Authority“ German Emissions Trading Authority Workshop “Domestic Offsets under Article 24 (a)” Brussels, 1st of March 2010. JI in Germany – Status Quo.

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Domestic Offset Projects: First Experiences with JI in Germany Dr. Wolfgang Seidel

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  1. Domestic Offset Projects: First Experiences with JI in Germany Dr. Wolfgang Seidel „Designated Focal Point / Designated National Authority“ German Emissions Trading Authority Workshop “Domestic Offsets under Article 24 (a)” Brussels, 1st of March 2010

  2. JI in Germany – Status Quo *Projects endorsed and approved are only counted once

  3. JI in Germany – prefered project categories Industrial gases - N2O, PFC, CH4 (Coal Mine Methane) • Large Volume of ERU, • few operators of large point sources • Calculation of the Baseline may be difficult – not BAU • Inclusion in the EU ETS after 2012 (N2O, PFC) Energy Efficiency / Biomass heating – Programmatic Approach • PoA participants are mainly SME or private households • For some activities, other funding schemes exist • JI can better address the target group • Small volume of ERU but large potential for replication

  4. JI in Germany – Challanges and need for coordination National Policy • Existing feed-in tariffs • Existing funding schemes • Assessment of Additionality according to AT from CDM • Accounting of electricity from the EU ETS (emission factor 0) • Accounting of biomass / leakage (emission factor > 0 unlike to EU ETS) European Level • Interpretation of „Acquis Communautaire“ according to Art. 11 b (EU ETS Directive) • Competition issues in Europe: Baseline under JI versus Benchmarks in EU ETS

  5. Joint Implementation after 2012 Present situation • Continuation of JI in a post 2012 climate agreement is probable • The German „Projekt-Mechanismen-Gesetz“ limits crediting until 2012 • Project developers hope for extension of the crediting period • Without extension, we do not expect any new projects before 2012 Proposals for Germany • Extension of the crediting period only for the programmatic projects • Adjustion of Baselines – Assessment of Additionality according present parameters • No new JI-Projecs after 2012 / replacement by DOP ?

  6. Expectations for Domestic Offset Projects Extending the spectrum of policy intruments • DOPs are complementary to • EU ETS, • funding schemes and • other legal instruments. • Incentives for the private sector to look for new and innovative activities Recommendations based on experiences • Assessment of Addtionality • Development of Methodologies • Verification by an independent entity • Basic design features – like JI Track 1 without investor country

  7. Proposals for Domestic Offset Projects Idea: Positive list • Ex-ante definition of eligible project categories • Clear definition of additionality and direction of investment towards certain sectors • Positive list can be open for innovative projects – search function of the market can be used Idea: Negative list • E.g. transfer / leakage of emissions into the ETS Idea: Harmonisation of Bseline • Maximum Baselines on the basis of European BAT

  8. Thank you for your attention !Announcement:DFP - Workshop: 7 May in BerlinDEHST Side Event: Carbon Expo 2010 in Cologne Dr. Wolfgang Seidel E-Mail: German.DNA.DFP@uba.de Internet: www.uba.de/emissionshandel

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